The feared landslide did not occur. There were many who bet that, after the flop of Netflix and the slowdown of Alphabet, the quarterly Meta, the former Facebook, would have confirmed the decline of social networks. But the company's accounts, despite the slowdown in revenues, have reassured the market on the number of active users: 1,96 billion, more than expected. The figure, announced on a closed stock exchange, allowed a leap of +18% for one of the kings of social media. Demonstrating that the match for control of the new information unleashed by Elon Musk on Twitter, which has only 217 million active users (but they are the ones that count), touches a sensitive nerve of capitalism, as well as of American society: Anonymous did knowing that he will no longer use the little bird if the owner of Tesla (+0,6%) decides to come out of anonymity.
Microsoft and Visa also lend a hand to the Bull.
Thanks also to the contribution of other excellent quarterly results, starting from Microsoft and Visa, the US market partially recovered the losses of the previous day: S&P +0,21%, the Nasdaq almost flat (-0,01%). That was enough to restore some good humor to the stock exchanges of the Old Continent, concentrated on the most dangerous economic effect of the war: the closure of the gas taps by Moscow, the litmus test for the cohesion of the EU. In this context, the fall of the euro to its lowest level against the dollar for six years favors inflation but is also the only medicine against the recession.
The Bank of Japan promotes bond purchases
The dollar at the top also lends a hand to Asian stock exchanges. Tokyo's Nikkei is up 1,3%, the yen travels to its lowest level in the last twenty years, with the cross at 129,6, after the Central Bank announced its intention to buy an unspecified amount of fixed-rate bonds, in any case not higher than 0,25% for ten-year maturities.
Chinese tech is also recovering: Alibaba +3%
Chinese price lists are also improving. Hong Kong's Hang Seng +1%: Hang Seng Tech, up 0,5%, is in the third consecutive session with the plus sign. Alibaba +3%. Baidu +3%. CSI 300 of the Shanghai and Shenzen price lists +0,5%.
In yesterday's meeting, the State Council chaired by Premier Li Keqiang reportedly decided to launch measures in favor of employment.
The 2,83-year Treasury Note traded 2,76% this morning from XNUMX% yesterday.
Pending EU sanctions, WTI oil is worth just over one hundred dollars a barrel, down 1,5%.
Gold at 1.876 dollars an ounce, prices not seen for two months
Euro at 5-year low, "a buffer against the recession"
Gas day for Europe. The Russian decision of cut supplies to Poland and Bulgaria, guilty of not paying the bill in rubles, triggered the fall of the euro below 1,06, to a level not seen for five years. In response, Europe could proceed with the gas and oil embargo: "Germany's dependence on Russian gas has dropped to 35%", noted Economy Minister Robert Habeck at a press conference in Berlin .
The weak euro favors rising inflation and declining consumer confidence. But, notes Ben Laidler, global analyst at eToro, not everything is silver lining: “The weak euro – he says – functions as a key cushion for the growing risks of a recession, together with interest rates at zero and the increase in the public spending. A weaker euro helps make the continent's globally oriented economies and companies more competitive and offset some of the growing economic pressures.
But consumer morale suffers, confidence in Germany collapses
However, the winds of war are making themselves felt in the choices of consumers in the countries of the Union.
In France, coinciding with the election spring, consumer confidence dropped to 88 points in April, from 90 in the previous month and against expectations at 92.
The climate is not very different in Germany, where the GfK Institute predicts for the month of May that the index of the same name, an expression of consumer sentiment, will settle at -26,5 points, down 10,8 points compared to previous month. Analysts' expectations had indicated a more limited deterioration, at -16 points.
In addition, the German economy ministry cuts its growth estimates for 2022 to 2,2% from 3,6% last January. The ministry believes the economy will expand by 2,5% in 2023, up from 2,3% previously assumed.
The government also sees inflation at 6,1% in 2022 and 2,8% next year, while rising energy prices are behind the jump in consumer prices in the country.
Fitch: difficult for Draghi to resist pressure in 2023
Things aren't better in the Bel Paese. According to Fitch, "Italy's economic prospects have deteriorated significantly." For the rating agency, it will be more difficult for the government to resist spending requests as the elections approach in the first half of 2023, while pressure will mount to increase subsidies for energy prices.
The spread rises to 177, Bots in auction for the maximum for 21 months
In anticipation of Friday's medium-long auction, when it will offer up to 8 billion euros in securities including a new 5-year bond, yesterday the Treasury placed 2020 billion semi-annual bills with rates rising to the highest since July XNUMX.
Around 17,00, the gap between BTP and Bund rates on the 10-year segment settled at 177 basis points, after having touched the highest level since July 2020 at 178, compared to 175 at the opening and 173 at Yesterday.
The ten-year BTP rate is at 2,58%, from 2,61% at the start and from 2,54% at the last closing.
European stock exchanges with plus sign. Thanks to the US
Thanks to the driving force of Wall Street and the weak euro, the stock exchanges of the Old Continent closed with a plus sign. Piazza Affari achieved an increase of 0,63%, to 23.830 basis points. The same script is staged in Paris (+0,48%), Frankfurt (+0,27%), Amsterdam (+0,11%), Madrid (+0,46%) and London (+0,53% ). Zurich is more toned (+1,09%).
In red Deutsche Bank and Crédit Suisse
Among the large companies that lifted the veil on their quarterly earnings today are banking giants such as Deutsche Bank (-5,6%) and Credit Suisse (-2,64%), both of which ended lower. The first, despite a better-than-expected result, says the Russia-Ukraine conflict could hurt its annual earnings; the second shows a loss for the period of 284 million and has decided on a governance reshuffle.
General Assembly, the Benettons vote for the Caltagirone list
On the eve of tomorrow's big match at thegeneral assembly (+0,25%), Edizione Holding has announced that it will vote for the Caltagirone list, on the basis of the principle that "it is up to the shareholders to propose the composition of the Board and not to the Board itself", as an internal source explains to Reuter.
The Benetton company, which owns just under 4% of Generali, intends to play "a peacemaking role" after the counting of the votes. Meanwhile, the recovery of Mediobanca continues (+3,04%).
In evidence Nexi, the best stock is Saipem
The rest of the financial sector is weak. Down the Big Intesa (-1%) and Unicredit (-0,5%). The focus on Mps fades away (-1,4%). Little moved Banco Bpm (+0,4%), which obtained from Fitch the long-term rating of 'BBB-' with a 'stable' outlook.
Well collected Nexi (+4,38%), driven by the quarterly results above expectations of the French rival Worldline.
In the energy sector, Tenaris marks the pace, on the eve of the results, while Saipem flies (+4,42%), best title of the day. Rate expectations weigh on utilities: Enel -0,33% thanks to a strong recovery in the final. JP Morgan has decided to cut the target price to 9 euros from the previous 9,20 euros.
Among the industrialists, Pirelli shines (+1,95%), in line with the positive results of Michelin. Rebounds also for Ferrari and Moncler (+3,68%).
